A government program to bail out banks at the height of the financial crisis has so far turned a profit, according to a report by investment bank Keefe, Bruyette & Woods Inc. The Capital Purchase Program, part of the $700 billion Troubled Asset Relief Program, has generated an average return of 10 percent on the initial investment in 61 banks that have fully repaid the aid, said the report, issued on Wednesday. Get the full story »
Filed under: Banking
Visit our Filed page for categories. To browse by specific topic, see our Inside page. For a list of companies covered on this site, visit our Companies page.
Credit card delinquencies fall to 8-year low
From CNN | Americans are not as far behind on their bills as a year ago. The number of consumers behind on their credit card payments fell to an eight-year low in the first quarter of 2010, the American Bankers Association said Wednesday. Overall, delinquencies across a wide-range of consumer debt categories have also fallen. Get the full story »
Sam’s Club to offer small business loans
Wal-Mart’s warehouse chain Sam’s Club says it is offering small business loans of up to $25,000 to its business members.
Giannoulias claims $2.7 million loss on tax forms
Democratic U.S. Senate candidate Alexi Giannoulias lost about $2.7 million last year in the collapse of his family’s Broadway Bank, according to tax returns his campaign released Friday.
Source: GM plans to file IPO in mid-August
General Motors Co. plans to file its initial public offering in mid-August, a source familiar with the situation said Friday.
General Motors is also in talks with banks for a revolving line of credit worth $5 billion. Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley each have agreed to provide $500 million worth of credit. Get the full story »
ShoreBank still could get TARP funds
From Crain’s Chicago Business | ShoreBank reportedly still could receive TARP funds, though Congress ended the bank bailout program to help pay for financial reform. Banks that applied before June 25 would still be eligible, according to an unnamed administration official.
Goldman execs grilled for taking AIG bailout money
A Goldman Sachs executive told an inquiry panel Thursday that the firm had no regrets about collecting billions of dollars in taxpayer money for correctly predicting the demise of the U.S. housing market.
David Viniar, Goldman’s chief financial officer, said Uncle Sam had an obligation to honor American International Group’s full debts. The firm was entitled to be paid $12.9 billion out of the $182 billion bailout that went to crippled insurance giant AIG — the largest federal rescue. “The government stepped into AIG’s shoes” and therefore had to honor its contract with Goldman, Viniar told the panel investigating the financial meltdown.
US Treasury cuts Citi stake at $2B gross profit
The U.S. Treasury Department said on Thursday it has earned a gross profit of about $2 billion so far on the sale of about one-third of its common stock holdings in Citigroup Inc. The sales have cut the Treasury’s stake in the bank from nearly 27 percent to about 17.6 percent. Citi shares rose briefly in morning trading, before falling about 2.39 percent to $3.67 by mid-morning. Most of the banking sector was trading down. Get the full story »
Corus fights to keep $257M in tax refunds
The parent of Chicago’s Corus Bank has moved to head off a grab by federal regulators at more than $257 million in tax refunds stemming from the bank’s collapse. Get the full story »
Bank lending stalled despite reform
From CNN | While Washington moves ahead on reforming the nation’s financial system, bank lending appears to be going nowhere fast.
Many banks have been reluctant to make new loans in recent months, in part, because of uncertainty about just how harshly lawmakers would crack down on the industry. But last week’s ironing out of a Wall Street reform bill may do little to revive the flow of credit. Get the full story »
GAO cites deficiencies in FDIC internal controls
A government watchdog has detected key deficiencies in the Federal Deposit Insurance Corp.’s internal controls that led to errors in the agency’s 2009 draft financial statements for its deposit insurance fund.
The errors, which involve the FDIC’s estimates of the loss-share transactions it has used to resolve bank failures, have been corrected. Get the full story »
June 28, 2010 at 6:07 p.m.
Comments Off
Filed under: Banking, Consulting, Government, Personnel moves Herencia leaves Midwest Banc Holdings payroll
Roberto R. Herencia has left Midwest Banc Holdings Inc., whose Midwest Bank unit failed last month, but has signed a consulting agreement that could pay him $25,000 a month.
In May, Midwest Bank, a $3.17 billion-asset lender that was among the first community banks to get federal bailout funds, was seized by regulators after failing to raise capital it needed to stay independent. Get the full story »
Old Second Bancorp discloses capital agreement
Aurora-based Old Second Bancorp Inc., which lost $60 million last year, has disclosed that it’s operating under an agreement with U.S. regulators to increase its capital to levels higher than what’s usually considered “well capitalized.”
The publicly traded lender, which has assets of $2.5 billion, outlined its capital-raising plans in a filing last week. Get the full story »
N.Y. Fed finds BP woes no risk to Wall St.
The Federal Reserve Bank of New York has been probing major financial firms’ exposure to BP Plc to ensure that if the oil giant buckles under the costs of the Gulf oil spill, it won’t put Wall Street or the global financial system at risk, according to two sources familiar with the matter.
After pouring over documents and asking banks in the last two weeks about their exposure to BP the Fed found no systemic risk and hasn’t asked firms to alter their credit relationships with BP, the sources told Reuters.
“The Fed gave banks’ exposure to BP a passing grade,” said one of the sources on condition of anonymity. Get the full story »
G-20 world leaders promise to cut deficits
World leaders made bold pledges to cut their spiraling budget deficits but will probably fall far short of their lofty goals. This pledge, by nations which represent 85 percent of the global economy, would represent a sea change in how the world’s major economies are handling their finances.
After spending massive amounts of money to rescue the global economy from the worst downturn in decades, the Group of 20 major industrial and developing nations have reversed course and promised to cut their deficits in half in terms of the global economy in just three years. Get the full story »
